OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned the Long-Term Issue Credit Rating of “bbb” to the recently announced CAD 475 million 4.85% non-cumulative rate reset Class 1 shares Series 23 preferred securities of Manulife Financial Corporation (MFC) (Toronto, Canada). The outlook assigned to the Credit Rating is stable.
The proceeds from the offering will be utilized for general corporate purposes. Holders of the Series 23 preferred shares will receive a non-cumulative quarterly fixed dividend yielding 4.85% annually, ending on March 19, 2022. The dividend will reset every five years at a rate equal to the five-year Government of Canada bond yield plus 3.83%. A.M. Best notes that along with this issuance, MFC has recently announced the early payoff of existing debt totaling CAD 1.1 billion. Despite the new issuance, MFC’s financial leverage remains within the range that supports the company’s current Long-Term Issuer Credit Ratings.
MFC reported net income attributed to shareholders of CAD 1.1 billion for third-quarter 2016, based on International Financial Reporting Standards. The positive financial results for the quarter are due to solid core earnings, growth in the company’s asset management business globally and strong investment-related experience.
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